Join our daily newsletter At The Bell to receive exclusive market insights
- Sacgasco (SGC) acquires BCP Energy and its associated potential oil discoveries in the Philippines
- SGC also acquires BCP Energy’s associated subsidiary NIDO Petroleum for $1, granting the company access to the Palawan Basin
- The tenement includes six existing oil discoveries and “several exploration prospects”
- Sacgasco Chairman Andrew Childs says these undeveloped oil discoveries will be a focus of immediate resource assessment
- Sacgasco shares were up 6.67 per cent and trading at 3.2 cents
Sacgasco (SGC) shares enjoyed a rise on the news it had acquired BCP Energy and its associated potential oil discoveries in the Philippines.
SGC purchased BCP Energy and its wholly owned subsidiary NIDO Petroleum for $1, which includes all rights and obligations in four Philippine service contracts and its local team.
Broadly, SGC affirms the Philippines provides an “attractive fiscal environment” due to a favourable regulatory environment amid the country’s bid to attract upstream investors and increase the country’s oil and gas resources.
Sacgasco Chairman Andrew Childs said the buy offered huge potential for the company.
“This acquisition could not be a better fit with our strategy to acquire low-cost oil and gas opportunities, especially those which are connected to materially under-supplied markets such as the energy-hungry Philippines,” he said.
“The existing undeveloped oil discoveries and the shut-in oil field West Linapacan will be a focus of immediate resource assessment and development studies to maximise value in the current high oil price environment.”
Sacgasco’s claims its newly acquired tenement, the Palawan Basin, includes six existing oil discoveries and several exploration prospects with no near-term commitments and low administration costs.
The ASX-lister said has commenced an evaluation of these resources in the hopes of securing early oil production.
Sacgasco shares were up 6.67 per cent and trading at 3.2 cents at 11:55 am AEST.
